EXHIBIT 12.1
WASTE MANAGEMENT, INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(In Millions, Except Ratios)
(Unaudited)
(In Millions, Except Ratios)
(Unaudited)
Years Ended December 31, | ||||||||||||||||||||
2007 | 2006 | 2005 | 2004 | 2003 | ||||||||||||||||
Income before income taxes, cumulative effect of change in accounting principle, losses in equity investments and minority interests | $ | 1,792 | $ | 1,560 | $ | 1,253 | $ | 1,316 | $ | 1,129 | ||||||||||
Fixed charges deducted from income: | ||||||||||||||||||||
Interest expense | 521 | 545 | 496 | 455 | 439 | |||||||||||||||
Implicit interest in rents | 44 | 49 | 51 | 51 | 69 | |||||||||||||||
565 | 594 | 547 | 506 | 508 | ||||||||||||||||
Earnings available for fixed charges (a) | $ | 2,357 | $ | 2,154 | $ | 1,800 | $ | 1,822 | $ | 1,637 | ||||||||||
Interest expense | $ | 521 | $ | 545 | $ | 496 | $ | 455 | $ | 439 | ||||||||||
Capitalized interest | 22 | 18 | 9 | 22 | 22 | |||||||||||||||
Implicit interest in rents | 44 | 49 | 51 | 51 | 69 | |||||||||||||||
Total fixed charges (a) | $ | 587 | $ | 612 | $ | 556 | $ | 528 | $ | 530 | ||||||||||
Ratio of earnings to fixed charges | 4.0x | 3.5x | 3.2x | 3.5x | 3.1x | |||||||||||||||
(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, interest expense related to income tax matters has been excluded from our measurements of “Earnings available for fixed charges” and “Total fixed charges” for all periods presented. |