Covanta Holding (CVA) 10-K 2010 FY Annual report

Exhibit 12.1

Covanta Holding Corporation
Computation of Ratio of Earnings to Fixed Charges

	For the Years Ended December 31,
	2010			2009			2008			2007		2006
	(In thousands, except ratios)
Earnings as defined inRegulation S-K(1):
Income from continuing operations before income tax expense, equity in net income from unconsolidated investments	$	56,501		$	103,536		$	170,914		$	100,298	$	96,571
Capitalized interest		(176	)		(508	)		(346	)		—		—
Dividends from unconsolidated investments		5,005			1,036			1,873			580		875
Fixed Charges		134,393			122,060			128,779			147,484		180,314
Total Earnings	$	195,723		$	226,124		$	301,220		$	248,362	$	277,760
Fixed Charges as defined inRegulation S-K(2):
Interest expense	$	121,894		$	106,944		$	112,599		$	130,679	$	162,777
Capitalized interest		176			508			346			—		—
Imputed interest on operating leases		12,323			14,608			15,834			16,805		17,537
Total Fixed Charges	$	134,393		$	122,060		$	128,779		$	147,484	$	180,314
Ratio of Earnings to Fixed Charges		1.46	x		1.85	x		2.34x			1.68x		1.54x

(1)	For purposes of computing the ratio of earnings to fixed charges, the term “earnings” shall be defined as income before income tax expense and equity in net income from unconsolidated investments plus dividends from unconsolidated investments and fixed charges less capitalized interest.
(2)	For purposes of computing the ratio of earnings to fixed charges, the term “fixed charges” shall be defined as interest expense, capitalized interest and imputed interest for operating leases.