EX-12 2 h64654exv12.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,  
    2008     2007  
Income before income taxes, losses in equity investments and minority interests
  $ 1,450     $ 1,331  
 
           
Fixed charges deducted from income:
               
Interest expense
    341       395  
Implicit interest in rents
    28       42  
 
           
 
    369       437  
 
           
Earnings available for fixed charges (a)
  $ 1,819     $ 1,768  
 
           
 
               
Interest expense
  $ 341     $ 395  
Capitalized interest
    13       16  
Implicit interest in rents
    28       42  
 
           
Total fixed charges (a)
  $ 382     $ 453  
 
           
Ratio of earnings to fixed charges
    4.8 x     3.9 x
 
           
 
(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.