EX-12 2 h58781exv12.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)
                 
    Six Months Ended  
    June 30,  
    2008     2007  
Income before income taxes, losses in equity investments and minority interests
  $ 926     $ 883  
 
           
Fixed charges deducted from income:
               
Interest expense
    227       267  
Implicit interest in rents
    19       31  
 
           
 
    246       298  
 
           
Earnings available for fixed charges(a)
  $ 1,172     $ 1,181  
 
           
 
               
Interest expense
  $ 227     $ 267  
Capitalized interest
    8       10  
Implicit interest in rents
    19       31  
 
           
Total fixed charges(a)
  $ 254     $ 308  
 
           
Ratio of earnings to fixed charges
    4.6x       3.8x  
 
           
 
(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, 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.