EX-12.1 3 h69024exv12w1.htm EX-12.1 exv12w1
Exhibit 12.1
 
WASTE MANAGEMENT, INC.

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(In Millions, Except Ratios)
(Unaudited)
 
                                         
    Years Ended December 31,  
    2009     2008     2007     2006     2005  
 
Income before income taxes and losses in equity investments(a)
  $ 1,475     $ 1,801     $ 1,792     $ 1,560     $ 1,253  
                                         
Fixed charges deducted from income:
                                       
Interest expense
    426       455       521       545       496  
Implicit interest in rents
    38       38       44       49       51  
                                         
      464       493       565       594       547  
                                         
Earnings available for fixed charges(b)
  $ 1,939     $ 2,294     $ 2,357     $ 2,154     $ 1,800  
                                         
Interest expense
  $ 426     $ 455     $ 521     $ 545     $ 496  
Capitalized interest
    17       17       22       18       9  
Implicit interest in rents
    38       38       44       49       51  
                                         
Total fixed charges(b)
  $ 481     $ 510     $ 587     $ 612     $ 556  
                                         
Ratio of earnings to fixed charges(a)
    4.0 x     4.5 x     4.0 x     3.5 x     3.2 x
                                         
 
 
(a) Our “Income before income taxes and losses in equity investments” for the periods presented has been significantly affected by charges for asset impairments, restructurings and other unusual items and income from divestitures. The effect of these non-recurring items 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 Consolidated 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.