EX-12.1 3 h76657exv12w1.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,  
    2010     2009     2008     2007     2006  
 
Income before income taxes and losses in equity investments(a)
  $ 1,656     $ 1,475     $ 1,801     $ 1,792     $ 1,560  
                                         
Fixed charges deducted from income:
                                       
Interest expense
    473       426       455       521       545  
Implicit interest in rents
    40       38       38       44       49  
                                         
      513       464       493       565       594  
                                         
Earnings available for fixed charges(b)
  $ 2,169     $ 1,939     $ 2,294     $ 2,357     $ 2,154  
                                         
Interest expense
  $ 473     $ 426     $ 455     $ 521     $ 545  
Capitalized interest
    17       17       17       22       18  
Implicit interest in rents
    40       38       38       44       49  
                                         
Total fixed charges(b)
  $ 530     $ 481     $ 510     $ 587     $ 612  
                                         
Ratio of earnings to fixed charges(a)
    4.1 x     4.0 x     4.5 x     4.0 x     3.5x  
                                         
 
 
(a) Our “Income before income taxes and losses in equity investments” for the periods presented has been significantly affected by restructurings, asset impairments, divestitures and other items that management believes are not representative of our results. The effect of these 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.