EX-12 2 h50757exv12.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES exv12
 

EXHIBIT 12
WASTE MANAGEMENT, INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(In Millions, Except Ratios)
(Unaudited)
                 
    Nine Months Ended  
    September 30,  
    2007     2006  
Income before income taxes, losses in equity investments and minority interests
   $ 1,331     $ 1,204  
 
            
 
                
Fixed charges deducted from income:
                
Interest expense
     395       412  
Implicit interest in rents
     42       37  
 
            
 
     437       449  
 
            
 
                
Earnings available for fixed charges (a)
   $ 1,768     $ 1,653  
 
            
 
                
Interest expense
   $ 395     $ 412  
Capitalized interest
     16       11  
Implicit interest in rents
     42       37  
 
            
Total fixed charges (a)
   $ 453     $ 460  
 
            
 
                
Ratio of earnings to fixed charges
     3.9x       3.6x  
 
            
 
(a)   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, interest expense related to income tax matters has been excluded from our measurements of “Earnings available for fixed charges” and “Total fixed charges” for all periods presented.

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