Waste Management (WM) 10-Q 2008 Q2 Quarterly report

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.